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3 years ago

A sum of compounded annually, amount to Rs

Mathematics

1 answer:

wolverine [178]3 years ago

8 0

Answer:

Step-by-step explanation:

ollowing is the formula for calculating compound interest when time period is specified in years and interest rate in % per annum.

A = P(1+r/n)nt

CI = A-P

Where,

CI = Compounded interest

A = Final amount

P = Principal

t = Time period in years

n = Number of compounding periods per year

r = Interest rate

Calculation Examples

You can solve for any variable by rearranging the compound interest formula as illustrated in the following examples:-

1. What is the compound interest of 75000 at 7.9% per annum compounded semi-annually in 3 years?

Ans. A = P(1+r/n)nt = 75000(1 + (7.9 / 100) / 2)6 = 94625.51

Interest = 94625.51 - 75000 = 19625.51

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